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On Wednesday, Hewlett-Packard Company (NYSE:HPQ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever surprises inevitably arise. That way, you’ll be less likely to have an uninformed, knee-jerk reaction that turns out to be exactly the wrong move.

As its shares moved sharply downward in 2012, Hewlett-Packard Company (NYSE:HPQ) drew criticism from many investors that it no longer deserved a place among the Dow Jones Industrials, considering that several other large tech companies had been left out of the index. But even in light of further weakness in the PC business, HP has made substantial strides in executing its long-term turnaround strategy of seeking a broader mix of more profitable businesses. Let’s take an early look at what’s been happening with Hewlett-Packard Company (NYSE:HPQ) over the past quarter and what we’re likely to see in its quarterly report.

Stats on Hewlett-Packard

Analyst EPS Estimate

$0.81

Change From Year-Ago EPS

(17.3%)

Revenue Estimate

$28.08 billion

Change From Year-Ago Revenue

(8.5%)

Earnings Beats in Past 4 Quarters

4

Source: Yahoo! Finance.

How will HP’s earnings fare this quarter?Analysts have gotten a lot more enthusiastic about HP’s prospective earnings in recent months, raising their views for the just-ended quarter by $0.04 per share and increasing their full-year estimates for the current fiscal year by more than four times that figure. The stock has responded similarly, gaining more than 25% since mid-February.

HP’s huge progress lately owes to its attempt to move beyond the struggling PC industry, which has seen its prospects continue to wane in light of the rise of mobile devices like smartphones and tablets. With first-quarter PC demand falling between 11% and 14% from year-ago levels, the PC business increasingly appears to be a dead end. And HP now makes less than 10% of its earnings from PC sales, so the company is on the road to making PCs largely irrelevant to its overall success.

But HP’s turnaround depends largely on industry conditions that are beyond its control, and some worry that those conditions are starting to deteriorate under the weight of heightened competition. When rival International Business Machines Corp. (NYSE:IBM)announced its earnings last month, it suffered from weak sales in IT hardware like servers, a niche in which it has shown substantial strength in the past. With HP looking to its own server division to help boost its growth, these negative signs from the industry are definitely unwelcome.